CRISIL Limited: Unaudited Financial Results for the Second Quarter ended June 30, 2006

Mumbai, July 10, 2006.

The Board of Directors of CRISIL Limited, at its meeting held today, approved the Unaudited Financial Results for the second quarter ended June 30, 2006.

The CRISIL Group consolidated¹ total income for the second quarter ended June 30, 2006, was Rs. 68.10 crore as against Rs. 37.47 crore (82%)² in the corresponding quarter of the previous year. The net profit after tax was Rs. 16.01 crore as against Rs. 5.57 crore (187%) in the corresponding quarter of the previous year. The total income for CRISIL Limited was Rs. 36.05 crore against Rs. 23.07 crore (56%) and the net profit after tax Rs. 8.07 crore as against Rs. 3.64 crore (122%) in the corresponding quarter of the previous year. For the six months ended June 30, 2006, the total consolidated income was Rs. 125.08 crore against Rs. 77.14 crore (62%) and the net profit after tax Rs. 25.16 crore as against Rs. 13.68 crore (84%) in the corresponding half of the previous year.

CRISIL Ratings continued to grow and maintain its leadership position in the domestic rating business despite challenging bond market conditions. Revenue growth was mainly driven by financial sector issuances and the new initiatives of Small and Medium Enterprise (SME) Ratings and Executive Training. CRISIL expects the market to pick up in the coming months due to revival of the securitization market and gradual recovery in the primary market for corporate bonds. CRISIL rated India's first pool of second loss pieces of ABS deals for a multinational bank. During the quarter, the Training Group conducted 16 training programs. The 'Emerging India Awards' for SMEs saw over 35,000 entries in the second year. The event, for which the entire selection process was managed by CRISIL, provided considerable visibility to CRISIL amongst SMEs. CRISIL Ratings' international business, consisting primarily of business with Standard & Poor's (S&P), continues to report satisfactory progress.

CRISIL Infrastructure Advisory registered a good growth in its revenues. Its focus on Multilateral Agency work has resulted in the Division winning a number of mandates funded by the World Bank and other multi-lateral agencies. Overseas engagements are currently on in number of countries in Africa and Asia. The Division is now the leading expert in preparing the City Development Plans for number of cities under the Jawaharlal Nehru National Urban Renewal Mission. The Power practice is actively engaged in the bidding process for Ultra Mega Power Projects and in the commercialization of unbundled utilities. The Division continues to work on numerous assignments in the areas of valuation, feasibility studies and SEZs. The division undertook important outreach initiatives, including a round table on "Issues in Captive Mine Development in India" and a Seminar on "Spurring Investment Growth in Textiles through Foreign Direct Investment (FDI): Needs, Issues & Challenges".

Gas Strategies Group (CRISIL's wholly owned subsidiary based in London) has performed well during the quarter. The profile of Gas Strategies Consulting business has made significant progress in the strategic direction of delivering "Solutions" type engagements. A large percentage of the revenue was delivered through international projects relating to different stages of major pipeline gas or LNG business development or implementation

CRISIL Investment & Risk Management Services (CIRM) continues to enjoy the leading position in providing the credit risk solutions. There are 17 banks that are using Internal Rating Software (RAM), and Capital Assessment Model (CAM) software developed by CIRM to meet the requirements of Basel II. CIRM has developed a new software tool 'Loss modelling' to enable the corporates to manage operational risk as required by Basel II. The other mandates include development of derivatives software to meet the requirement of valuation and according of derivatives and retail software to meet the requirement of retail analytics.

CRISIL's Research and Information business (CRISIL Research) maintained growth momentum through a combination of renewals of subscriptions to CRISIL Research's standard products, delivery of customized research assignments and sales of the third edition of the book on accounting and analysis. CRISIL Research made significant progress on the global sector reports project with Standard and Poor's.

Irevna Group of Companies, the wholly owned subsidiaries of CRISIL providing high-end analytical outsourcing service to international clients, maintained the growth during the quarter and increased headcount from 317 to 392 during the quarter. The quarter saw new business engagements with European sell side firms, asset managers in Europe, Canada and the Middle East, and hedge funds.

CRISIL has been engaged in joint market development activity with S&P in order to showcase the potential benefits of S&P's wide ranging competencies, offered through a global product portfolio in the Ratings, Fund Services, Equity Research Portfolio Advisory and Data and Information domains, to potential clients in the Indian corporate and the financial sector. An outreach programme is also on to showcase CRISIL's deep insights and research on Indian companies, and markets to global investors using the wide global network of Standard & Poor's.

Concluded.

1. The consolidated accounts include accounts of CRISIL Ltd. and its subsidiaries CRISIL Research and Information Services Ltd., CRISIL MarketWire Ltd., Global Data Services of India Ltd., CRISIL Properties Ltd., Gas Strategies Group Limited (UK) and its subsidiaries, Irevna Research Services Ltd, Irevna Limited (UK) and its subsidiary, and proportionate share in income and expenses of joint venture India Index Services & Products Ltd.
2. Figures in parenthesis represent growth over previous year.

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